Question:

How do I find out if the organization to or through which I am donating is legitimate?

The charity or car donation charity should assume all costs associated with the donation. If they do not, conduct further investigations into their business practices and reputation. Do note, however, that costs associated with obtaining a duplicate title or transferring the plates from your donated vehicle, and any insurance you need until the donation is complete, remains the donor's responsibility.

While your interests may lie primarily in disposing of an unwanted vehicle and helping the needy, you may also have specific intentions for how your donation will be used. If you know what organization you wish to benefit, make sure that organization does accept vehicle donations directly, or participates in a vehicle donation program. Also, find out which car donation program(s) with which it works. When you donate your vehicle, be sure to specify the charity to which you want the vehicle or proceeds thereof to be donated

Organizations usually sell the vehicles and use the proceeds to fund programs. Others use cars as teaching tools in educational programs and to provide transportation to low income families or dislocated workers. If you have a preference for how your vehicle will be used, it you should ask the car donation service or the charity these questions. Also, according to new IRS guidelines for vehicle donations, the documentation that you will need from the charity will be different depending on how the organization will use the vehicle.

Many car donation services take only a small fee for the expense of picking up and disposing of the vehicle. Some intermediaries, such as auction houses and used car dealerships, negotiate terms that leave the charity a tiny percentage of each donation. Find out these particulars, and weigh the pros and cons of each option. Remember that in order to be considered a charitable gift by the IRS, used cars must be given to the charity or a valid agent of the charity. Keep in mind that some for-profit companies also advertise for automobile donations and donations to these companies are not tax-deductible.

Your responsibilities as a donor should generally be limited to determining the fair market value of the vehicle you are donating, obtaining and presenting the title, and then transferring liability. You will also want to make sure you remove personal belongings from the vehicle. If the car donation program asks you to do more than this or to undertake costs, do more investigation about the program and be sure you understand the guidelines and standards in your state.

Several years ago, the General Accounting Office reported that many charities, using third party vendors in their car donation programs, received as little as 5% of the amount claimed as a deduction on the donor's tax return. While the 2005 changes to IRS guidelines for vehicle donations aims to ensure that charities derive more benefit from donations, it is still wise to investigate your car donation options to be sure the greatest amount of benefit goes to your chosen charity. Be just as informed about your automobile donation as you would be with a cash donation: if the charity does not accept your vehicle directly, ask about the dollar amount or percentage received by the charity.

Recent Car Donation Questions

Q.
What if the car being donated is a collector`s item, rather than a standard vehicle ?, I have a collection and selling is such a hassle, I would rather donate this car instead, but the valuation would need to be fair market based on my investment in the vehicle.
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Q.
what percentage of a donated vehicle may I right off? does the tax bracket I fall in impact the amount of the right off?
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Q.
Am I liable for towing costs a collection agency is demanding after I donated a car to charity? The charity sold/disposed of the car, the buyer incurred the costs before my name cleared from DMV records. Receipts and letters from the charity (included the name of the new owner) have not persuaded the collection agency.
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Q.
where can i get a handicap place card for my car? it hangs in rear view mirror. thanks
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